Land Rover Case Study

During the time period of the case, consumer perception of the models in the Land Rover family is fairly muddled. Though the Range Rover is the first vehicle introduced in the U.S. and is almost $25,000 more than the Land Rover Discovery, consumers believe that the Discovery is the better vehicle. (Which is very different from its competitor, Jeep, which has very clear differentiation in consumers’ minds that follows its positioning). The change in the corporate name from Range Rover to Land Rover surely exacerbates this confusion. The best way to combat the confusion and gain enthusiasm from buyers for its products is for the company to clearly differentiate its vehicles from one another before it differentiates them from the competition.
Land Rover has identified two main segments in the 4x4 leisure sector: young, affluent adults with no kids and family/conservative buyers. As it is substantially more expensive (far more so than most other SUVs) and in the consideration set for buyers also considering Mercedes and Jaguar (Exhibit 16), the Range Rover may be best suited for the young affluent target. The company should strengthen the Range Rover’s position as the ultimate luxury adventure SUV before other luxury brands launch new vehicles in 1996. The Discovery with its high safety ratings (Exhibit 18), seating for up to seven passengers and more affordable price tag is then set to take on the family/conservative sub-segment. Females are relatively more concerned about safety (Exhibit 8). They comprise 34 percent of total SUV buyers while only 24 percent of Discovery buyers (Exhibit 19) so their may be room for growth with this consumer if she is convinced that her family will be safer in a Land Rover Discovery. Discovery is also already selling better than the total SUV market with families: 38 percent compared to 24 percent (Exhibit 19).
Following from the stated research above, the following positioning statement is recommended for the Land Rover